08/02/1993 (2)
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~:~~:';'::,_ " "a) Executive Dfr~ctor Search Report
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COMMUNITY REDEVELOPMENT AGENCY
August 2, 1 993
The City Commission, meeting as the Community Redevelopment Agency, met in
regular session at City Hall, Mondav, August 2, 1993 at 1 :55 p.m., with the following
members present:
Arthur X. Deegan, II
Rita Garvey
Richard Fitzgerald
Sue A. Berfield
Fred A. Thomas
Phil Henderson
Lillian Trickel
Chairperson
Vice-Chairperson
Member
Member
Member
Ex*officio Member
Ex-officio Member (absent)
Also Present were:
Michael J. Wright
Milton A. Galbraith, Jr.
Mary K. Diana
Executive Director
Attorney
Secretary
Chairperson Deegan said he has ,made several comments about the effectiveness of the
CRA: however, he feels the board has embarked upon an agenda of change. He said several
decisions have been made which are aimed at making some radical differences in the way the
, CRA is managed such as the hiring of a full time executive director and scheduling regular
, CR~ meetings. He said there is a need to overcome the perception the CRA is not
accomplishing anything and for the board to work hard in moving forward. He suggested
adopting the motto llLet's just do it" as the board's way of approaching issues in the future.
ITEM II. -' Minutes:
, ' Member Garvey moved to approve the minutes of the June 28, 1993 and Julv 12,
1 993, meetings. The motion was duly seconded and carried unanimously.
, ITEM III. - Unfinished Business
Chairperson Deegan referred to his memo that summarized what has been done so far
.' regarding the selection of an Executive Director for the CRA. He said the Screening
,Committee, consisting of Commissioner Thomas and himself, interviewed the applicants and
prepared the following "short list": (1) Peter Gozza, Pinellas Park; (2) Alfred Holzman, North
,Miami Beach: (3) Yvonne Magee, Fort Lauderdale; and (4) "Dottie" Stephenson, New Orleans.
At a previous CRA meeting, it was agreed the finalists should be invited to come to
Clearwater and be interviewed one on one by each of the other three members. Copies of the
resumes of the finalists have been forwarded to the Trustees. Chairperson Deegan said there
minCR08a.93
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is additional background information left by three of them. He referred to letters he has
drafted to send to those applicants who made the final list and to those who did not. Once a
date is selected for interviewing the candidates, the letters can be sent in hopes of making a
final choice expeditiously.
Ex-Officio Member Phi1 Henderson requested a copy of the material mentioned above.
Member Berfield indicated she has not received all the applicants' resumes and it was
indicated staff will make sure she has them. Executive Director Wright said he would also
make sure Ex-Officio Lillian Trickel received the material.
Member Thomas requested consideration to include the CRA Ex-Officio Members in the
interview process. He said he would like to hear their comments as DDB members.
Member Garvey felt the board may also want to include other groups, such as the
Chamber, to be part of the listening process.
Member Thomas felt privately conducted interviews would be more appropriate. He
said after the interviews are completed public discussion can be held with each member giving
a rating preference.
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Member Garvey said she was uncomfortable with this approach. She said by
interviewing as a group the members cou\d hear aU questions asked and answers given.
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Chairperson Deegan thought the board agreed to interview one on one at a previous
meeting and he indiceted it is uncomfortable for a person to be interviewed by a group.
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Member Berfield ag,reed the CRA Ex-Officio members should be part of the interview
process.
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There was discussion regarding a reference check on the finalists and Chairperson
Deegan suggested doing this after the individual interviews have been conducted.
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Member Thomas said he would also like to see Executive Director Wright and the City
Attorney Galbraith part of the interview process as he was interested in their opinions.
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, Member Garvey pointed out even though previous minutes reflected doing individual
interviews"the members still had the option of conducting them as a group.
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Member Garvey moved for the board to interview the candidates as a whole and to
include the CRA Ex-Officio members in the interview process. The motion was duly
seconded.
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'Member Fitzgerald questioned whether Chairperson Deegan and Member Thomas were
an exception to the interviewing process since they had already interviewed the candidates as
members of the Screening Committee. Member Garvey said no member would be excluded.
She questioned whether the applicants had a problem with public interviews.
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Discussion ensued in regard to when the individual interviews should be conducted and
August 11, 1993 was scheduled. A suggestion was made to start the interviews early in the
morning because some of the interviewers are attending the Florida League of Cities
Conference in Ft. Lauderdale. The City Manager. City Attorney and the ex-officio members of
the CRA will sit in on one of the interviews.
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Member Thomas said he never discussed r.nnt:h..!~!,jng individual interviews with the
applicants and found interviewing as a group an inhuman method of dealing with people. He
felt interviewing one on one was the best way to develop a relationship and would personalize
. the interview. He said the Commission could then discuss the applicants without them being
present. He said he is totally opposed to group interviews at the executive level.
Member Garvey pointed out that City Manager and City Attorney candidates have been
interviewed by the Commission as a group. She said she saw no problem with separate
interviews but felt questions needed to be asked as a group.
Member Berfield said she had no problem interviewing the finalists one on one if the
members meet as a body after conducting the individual interviews. She pointed out the
charter governs the procedure by which the City Attorney and the City Manager are
interviewed and evaluated. She found this method to be uncomfortable and degrading for
them. She said she wanted the new executive director to feel comfortable.
Member Thomas said he had no problem in evaluating tenured employees in public as a
group; however, found the process of interviewing candidates for City Manager and City
Attorney improper and questioned whether the charter should be changed. He found it
inappropriate to have the interviewing process conducted in public where all the other
candidates could listen to what each had to say.
Chairperson Deegan said he would vote against group interviews for the reasons
already stated.
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Upon the vote being taken on the motion on the floor, Member Garvey voted nayell;
Chairperson Deegan and Members Berfield, Fitzgerald and Thomas voted ftnayll. Motion
failed.
Member Garvey questioned whether a motion reflecting individual interviews should be
made and this was found to be unnecessary.
b) Status of Community Development Corporation (CDC)
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Executive Director Wright said Chairperson Deegan had requested more detailed
information on the CDC concept. He said he had received the additional information this
morning; but, did not have time to review it. He said he would forward it to the members
tomorrow.
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Chairperson Deegan said he had wanted clarification of the submission date for the
COCo He said he believes the state will accept applications to form a coe at any time; it is
the grant applications that will not be accepted until March. He said if this is true. there is no
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Member Garvey moved to approve the Community Redevelopment Agency (CRA)
budget process as submitted. The motion was du\y seconded and carried unanimously.
(Later In the meeting, the process was amended to hold two public hearings.)
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reason to delay its formation. He said direction had been given to try and form the COC and
the Executive Director responded he felt the schedule could be accelerated.
Chairperson Deegan pointed out the CRA's regular meeting would not be for two
weeks and questioned whether approval of the new proposal would be needed before
anything could be started. The Executive Director said if there are no objections to the new
proposal to be forwarded to the members tomorrow, he would like to proceed.
Member Garvey felt strongly that the new executive director should be part of the
planning of the CDe and Executive Director Wright indicated the proposal is still in the 'early
stages.
c} Budget Procedures
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The following is the proposal for the Community Development Agency (CRA) Budget
Process: (1) have one public hearing (after 6:00 p.m.) on the CRA budget to be advertised
through a display ad in the paper as well as mailing to property owners in the CRA district; (2)
a column would be added to the City's budget ad which would reflect the proposed CRA
budget; (3) the CRA budget would be approved by a formal resolution adopted by the CRA at
the end of the advertised public hearing; and (4) quarterly budget reports would be presented
in the same fashion as City quarterly budget reports, with 'amendments baing made only near
the end of the fiscal year.
,ITEM IV. - June. 1993 Financial Statement
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Finance Director Dan Deignan said the financial statement, as presented, is in the
format requested by the members. He said there was activity in June primarily in the area of
expenditures. The miscellaneous expenditures of $4898 consisted of a plane charter to
Atlanta and a deposit for roof repairs to the eET A building. The parking lot expansion covers
the demolition of the Kravas building, The final item, approved by the eRA, was an additional
transfer to the General Fund to subsidize the Jolly Trolley for an additional three months. Mr.
Deignan pointed out total funds available for appropriation are $257,443; however, the
amended budget for 1992-93 does not reflect having this amount left at the end of the year;
it reflects what we currently have.
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Member Thomas, referring to the Kravas parking. asked how revenue is being received
if the property is not yet a parking lot. Executive Director Wright said a cost sharing
arrangement was made with Mr. Kravas when the CRA bought this property. Member
Thomas asked why the CRA owns the parking lot rather than the City And Executive Director
Wright indicated it seemed more appropriate as the eRA had more money at the time. He
said there are a number of cost sharing arrangements in the parking fund. Member Thomas
thought there should be a definitive agreement from the Board if parking in downtown
Clearwater is designed to redevelop the downtown and the CRA shoutd take responsibility for
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regarding its funding versus where the money happens to be at the time. The Executive
Director said if and when the CRA is dissolved, the assets will flow to the City.
Chairperson Deegan questioned the $10,000 + figure under "Other Income" and Mr.
Deignan said this reflected a correction of an error from the prior year. In response to a
question, he said this is actual cash in the bank.
Chairperson Deegan questioned what professional services are being done at the East
End for the benefit of the CRA and Executive Director Wright asked staff to research.
Referring to reimbursement of the general-fund administrative expense, Chairperson
Deegan said it was his understanding the $104,000 + is to run the Economic Development
Department for a year. He pointed out that the department will be without a director for two
months and questioned why the City was being reimbursed for a whole year's operation. Mr.
Deignan said this could be readjusted and was just a budget estimate. Chairperson Deegan
asked for a detailed breakdown in the future. Mr. Deignan said next year's budget proposes
to charge all the new Executive Director's and his staff's expenses to this fund directly.
In response to questions raised earlier in the meeting regarding professional services,
Administrative Support Manager Bill CantUn said $3,500 was paid to R. E. Marketing
Consultants for an appraisal fee of the East End and a legal fee to Holland & Knight of
approximately $1 ,000 plus expenses to research questions on including residential in the CRA.
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Chairperson Deegan questioned the propriety of showing payment for a full year for the
Economic Director and Mr. Deignan indicated this was done for facilitation purposes.
Chairperson Deegan said he would like to obtain as much interest as possible as the CRA fund
is dwindling.
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Executive Director Wright said Holland & Knight was used when considering whether
or not to lease the property at the East End to MAS ONE Development Company as they were
familiar with CRA regulations. R. & E. Marketing was used to appraise the 14 acres in the
eRA. basically known as the Annex site.
Chairperson Deegan questioned if professional services should be increased to $6,000
and if more work was being done by the above referenced firms. Mr. Deignan responded
there is nothing being planned and indicated this e~j~"'lment gives the leeway to spend money
between now and the end of the year if necessary. Chairperson Deegan said at some point
the board will need to discuss what is considered to be conservative budgeting~
Member Barfield moved to accept the June Financial Statement. The motion was duly
seconded and carried unanimously.
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Mr. Wright said City staff is ready to proceed at any time regarding funding for the
operation of the Jolly Trolley; however, he felt the first move should be taken by the not-for-
profit,corporation and the Pinellas Suncoast Transit Authority.
Member Thomas said Mr. Sweeney indicated last week an agreement had been sent;
however, has not received it. He said he would strive to get a copy from the PSTA tomorrow.
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He said Mr. Sweeney commented they were able to come up with an agreement to
accomplish the goals set and it was compatible with all parties concerned.
ITEM V. - Amended Budoet for FY 1992-93
Finance Director Dan Deignan said the tax increment financing revenues have been
adjusted to what staff knows they will be for the year. He said there are some estimates
made for the remaining revenues for the remainder of the year. There is a transfer for the
Jolly Trolley. He said Chairperson Deegan had pointed out the $6,000 in professional services
for East End may be more than is needed. Mr. Deignan felt there may be travel and other
expenses incurred in the Executive Director process not budgeted. "Professional Services-
East EndIJ was adjusted to $4,600 as it was anticipated nothing will be spent on the East End.
Mr Deignan pointed out the original budget balanced exactly showing an excess of revenues
and expenditures. He said the way this was accomplished was to put everything left over in .
"Transfers InlOut for Funding Capital Projects. He said if the board has not identified any
capital projects between now and the end year there will be an excess of revenues and will be
transferred into the debt service fund.
Member Thomas said he understood the revenues could be carried into the next year
for future projects and Mr. Deignan said provided the project is pursuant to the approved
Community Redevelopment Plan. Member Thomas said he would like to move the money into
the following year so it can be seed money for projects.
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Chairperson Deegan asked Executive Director Wright if he could provide a list of
projects that the City may want to do next year so the funds could be allocated.
In response to the carryover of excess money in the CRA, the City Attorney said the
project needed to be identifiable and should be referenced in the adopted plan.
Chairperson Deegan questioned whether an appropriation of funds for projects that
were consistent with the measures of success as shown in the five-year development plan
, would be appropriate. The City Attorney responded he believed this was reasonable.
Chairperson Deegan asked that the other members give thought to a list of possible
projects in order to move forward with the overall plan.
Member Thomas said he would like to focus on the development of a Main Street
Program.
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Chairperson Deegan referred to a meeting of the Florida Redevelopment Association
regarding who could apply for a Main Street Program. He said grants would be awarded in
Orlando In August and it was suggested Clearwater send a representative. Ex-Officio Member
Henderson felt the Downtown Development Board's consultant would be agreeable to
attending. Majority consensus was for Mr. Henderson to request a DDB representative to
attend the Orlando meeting. In response to a question, Mr. Henderson said he felt the DDB
will take care of expenses of sending a representative.
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Member Thomas pointed out back up support from the state on how to have a
successful Main Street program is available even though no funding is received.
Chairperson Deegan questioned rental income received from the STEP lease, whether
the building is empty and why the revised budget is being adjusted and Mr. Deignan said he
believed there is money still owed to the City. Mr. Deignan suggested making the
recommended amendments to the budget and bringing it back at the next meeting.
Chairperson Deegan suggested changing the reference to "capital projectstl and Mr. Deignan
recommended the reference Itredevelopment projects" which was agreeable.
Member Thomas moved to continue the amended budget for fiscal year 1992-93 to the
next meeting. The motion was duly seconded and carried unanimously.
ITEM VI. - Review of orooosed Budget for FY 1993-94
In the proposed budget for fiscal year 1993-94 , total revenues are projected to be
about $120,000 less than the current year, due primarily to a reduction in the taxable value of
the district and a corresponding reduction in the projected tax increment revenues to be
received.
Even with reduced revenues, the City is still projecting an excess of revenues over
expenditures of $ 171 ,013 for the year. This amount can be appropriated now or at any time
during the upcoming year.
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Dan Deignan referred to the budget as speculative. He said the revenues are down
because the value of the tax base in the eRA is down 7 percent from last year. The largest
single property drop was the Sun Bank building. He said the county and city shares of the
revenues are calculated separately and he reviewed how the tax increment revenues are
calculated. He said major changes would be in the area of administrative expenses due to the
new Executive Director and Staff Assistant positions. He felt the budget would be subject to
change once the new director is on board.
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There was discussion regarding the number of public hearings to be held as the agenda
item called for two public hearings and the proposal for the eRA budget process approved
previously called for only one public hearing.
Chairperson Deegan questioned whether having the eRA budget as part of the City
budget could be confusing to the citizens and whether there should be two public hearings
regarding the eRA budget.
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, Member Garvey moved to amend her previous motion in subsection 1 of the eRA
budget process to reflect two public hearings. The seconder accepted the amendment. ,The
amended motion was duly seconded and carried unanimously.
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Chairperson Deegan asked that the words "Bilgore/Bluff Parcels" be deleted from
U Advertising" under uExpenditures."
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Member Thomas questioned why an expenditure is being shown for the parking fund
on the Garden Avenue Garage but no revenue is being shown. Mr. Deignan said the line item,
"Coachman Lease" is the rental income for the Garden Avenue Garage. Member Thomas
asked that Garden Avenue Garage be added to show the relationship between the income and
expenditure lines. Member Thomas suggested a change to debt service escrow at year end
and Mr. Deignan said he would change it to reflect funding for redevelopment projects prior to
advertising for public hearing.
Member Garvey moved to approve the preliminary budget for fiscal year 1 993-94 as
amended. The motion was duly seconded and carried unanimously.
ITEM VII. - Florida Power Grant Reauest
Chairperson Deegan reported on the program indicating he has been researching
possible ways in which elements of the private sector might work with the public sector in a
cooperative effort for the revitalization of downtown. Mr. Ed Schons, Florida Power's
Corporate Manager of Economic Development explained the various programs his company
has implemented to assist cities in their overall economic development. Most of them are
aimed at the smaller towns in their service area. After much discussion, it appeared the CRA
eQuid qualify for a matching grant (dollar for dollar, up to a maximum of $1 ,000) in their
Cooperative Marketing Program.
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Florida Power is presently experiencing a major reorganization and general cost cutting
program internally. Funds for assistance to the CRA might be at risk unless requested
immediately.
Chairperson Deegan has submitted a letter and application in the name of the eRA in
order to request those dollars before they go away. They will be earmarked for printed
materials (a brochure of some sort) to encourage participation on the part of property owners
in whatever program is put together for business retention and recruitment. What the
program will be is up to the board as a whole. He said he did not want to lose the funds and
the cooperation they represent.
Chairperson Deegan asked if there is a need for further information. He said he is not
proposing to redo the demographics brochure of the City that IS now used. This had more to
do with a particular project such as the Main Street Program. He felt this small project would
cost approximately $2,000 and its purpose is to ask members of the downtown community jf
they would like to cooperate in any projects the CRA may embark upon.
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ITEM VIII. - Executive Director Verbal ReDorts
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A) Special Meeting regarding the CRA property in conjunction with City Sale of Sun Bank
Building
The Executive Director said he has asked for a special meeting of the CRA and a
special meeting of the City Commission, if necessary, on August 9, 1993, ~t 2:00 p.m.
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Member Fitzgerald asked if the terms of the proposal will be received prior to the
special meeting and Executive Director Wright indicated he coutd not guarantee it would be
received.
Member Thomas requested the City Manager prepare an alternative plan to proceed
with the property if an agreement cannot be reached.
ITEM IX. - Other Agent Business
Chairperson Deegan preferred to refer to the members as "Trustees" as outlined in the
statutes rather than ttAgents".
Member Barfield thought on page 9 of the June 28, 1993 minutes (which were
approved as submitted earlier) the statement should read "when action is not needed" rather
than "when action is needed." Staff to review.
Member Fitzgerald asked consideration be given to having a Chamber of Commerce
representative si,t on the CRA.
Member Thomas found this to be a positive approach and suggested CRA ex-officio
members include a representative of the Downtown Development Board and a representative
of the Chamber' of Commerce.
Member Garvey questioned whether there should be an expansion of the ex-officio
membership.
Chairperson Deegan said the Downtown Development Board is a special taxing district
and felt ex.officio members should be limited to taxing districts. He said there are other ways
to involve 'different agencies.
Ex-officio Member Henderson said the Chamber wanted to be part of the process in the
selection of the new Executive Director and recommended Ray Korzeniowski as the ideal
person to represent the Chamber.
Member Thomas said he was not sure the eRA ex-officio membership should not be
expanded and/or if the downtown merchants association should become involved. He said
better communication and common goals are achieved when more organizations are involved.
Chairperson Deegan asked Member Thomas to prepare an agenda item with his
recommendations.
ITEM X. - Adiournment
The meeting adjourned at 3:30 p.m.
, ATTEST: 0. ~ >.' [ A. ~~~
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